NRS 119.010Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 119.015 to 119.112, inclusive, have the meanings ascribed to them
in those sections.

NRS 119.020“Blanket encumbrance” defined.“Blanket
encumbrance” means a deed of trust, mortgage, judgment, including an option or
contract to sell or a trust agreement, affecting a subdivision or affecting
more than one lot offered within a subdivision, except that such term does not
include any lien or other encumbrance arising as the result of the imposition
of any tax assessment by any public authority.

NRS 119.075“Property report” defined.“Property
report” means a report, issued by the Administrator pursuant to the provisions
of this chapter, which authorizes a developer to offer to sell or sell an
interest in a subdivision and contains the disclosures required in NRS 119.182.

NRS 119.080“Purchaser” defined.“Purchaser”
means any person who acquires or attempts to acquire an interest in any portion
of a subdivision.

(Added to NRS by 1971, 1403; A 1973, 1751)

NRS 119.090“Registered representative” defined.“Registered
representative” is any person who is employed or engaged by a developer to
represent a company for compensation in offering or selling subdivided lands
pursuant to this chapter, but does not include any officer of the developer or
any of the subsidiaries of the developer, or any owner, partner or associate of
the developer who would not be classed as a dealer and who is listed and
approved by the Division.

(Added to NRS by 1971, 1404; A 1973, 1751)

NRS 119.100“Sale” defined.“Sale”
means any sale, exchange, lease, assignment or other transaction designed to
convey an interest in any portion of a subdivision when undertaken for profit.

(Added to NRS by 1971, 1404)

NRS 119.105“Statement of record” defined.“Statement
of record” means the information submitted to the Administrator by the
developer in its application for a permit to offer to sell or sell an interest
in a subdivision.

NRS 119.110“Subdivision” defined.“Subdivision”
means any land or tract of land in another state, in this state or in a foreign
country from which a sale is attempted, which is divided or proposed to be
divided over any period into 35 or more lots, parcels, units or interests,
including but not limited to undivided interests, which are offered, known,
designated or advertised as a common unit by a common name or as a part of a
common promotional plan of advertising and sale.

1. The Division may do all things necessary
and convenient for carrying into effect the provisions of this chapter.

2. The Attorney General shall provide
opinions for the Division on all questions of law relating to the construction
or interpretation of this chapter, or arising out of the administration
thereof.

3. The Attorney General shall act as the
attorney for the Division in all actions and proceedings brought against the
Division under or pursuant to any of the provisions of this chapter or the
regulations promulgated thereunder.

1. The Administrator may adopt regulations
which establish procedures for the Division to conduct business electronically
pursuant to title 59 of NRS with persons who are regulated pursuant to this
chapter and with any other persons with whom the Division conducts business.
The regulations may include, without limitation, the establishment of fees to
pay the costs of conducting business electronically with the Division.

2. In addition to the process authorized
by NRS 719.280, if the Division is
conducting business electronically with a person and a law requires a signature
or record to be notarized, acknowledged, verified or made under oath, the
Division may allow the person to substitute a declaration that complies with
the provisions of NRS 53.045 or NRS 53.250 to 53.390, inclusive, to satisfy the legal
requirement.

3. The Division may refuse to conduct
business electronically with a person who has failed to pay money which the
person owes to the Division.

NRS 119.116Employment of counsel, investigators and professional
consultants.The Division may
employ, without regard to the provisions of NRS
228.110 or of chapter 284 of NRS, legal counsel,
investigators and other professional consultants necessary to the discharge of
its duties.

(Added to NRS by 1973, 1759)

NRS 119.118Support of Division by legislative appropriation; disposition of
fees and charges.All fees and
charges received by the Division shall be deposited in the General Fund in the
State Treasury. Funds for the support of the Division shall be provided by
direct legislative appropriation, and shall be paid out on claims as other
claims against the State are paid.

(Added to NRS by 1973, 1759)

APPLICABILITY AND EXEMPTIONS

NRS 119.119Applicability to subdivision registered under Interstate Land
Sales Full Disclosure Act.Any
subdivision which has been registered under the Interstate Land Sales Full
Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, is subject to all of the
requirements of this chapter, except that its developer may file with the
Division a copy of an effective statement of record filed with the Secretary of
Housing and Urban Development. To the extent that the information contained in
the effective statement of record provides the Division with information
required under this chapter, the effective statement of record may substitute
for information otherwise required under this chapter.

(Added to NRS by 1983, 414)

NRS 119.1193Applicability to subdivision restricted exclusively to
nonresidential use.The provisions
of this chapter do not apply to any subdivision in which all lots, parcels,
units or interests of the subdivision are restricted exclusively to nonresidential
use.

NRS 119.1197Exemptions: Undivided interests in unimproved land that is undivided,
located outside Nevada and offered for investment purposes; requirements to
obtain exemption; regulations; revocation; complaints.

1. The provisions of this chapter do not
apply, unless the method of disposition is adopted to evade those provisions or
the provisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§
1701 to 1720, inclusive, upon notification to the Division by the person
electing to be exempt under this subsection, to the sale of an undivided
interest in unimproved land if:

(a) The land has not been divided into lots or
parcels;

(b) The land is not located in this State; and

(c) The undivided interest is offered for
investment purposes and not for short- or long-term residential development
purposes.

2. The seller of land exempted pursuant to
this section must provide a property report from the jurisdiction where the
land is located to each potential purchaser of the land.

3. The Division shall adopt regulations
prescribing the application for an exemption pursuant to this section. The
application must be posted by the Division on its Internet website. The
application must contain:

(a) All information necessary to determine if an
applicant is qualified for the exemption, including, without limitation, the
information contained in paragraphs (a), (b) and (c) of subsection 1;

(b) The name, address, telephone number and
license number, if any, of the owner, broker or seller of the land; and

(c) A property report issued by the jurisdiction
where the land is located.

4. An application for an exemption
pursuant to this section must be accompanied by the applicable fee specified in
NRS 119.320.

5. An owner, broker or seller of land who
applies for an exemption pursuant to this section must notify the Division of
any change of his or her address, telephone number or other contact information
within 10 days after such change. The Division shall update its records to
reflect any changes in such information without charge to the owner, broker or
seller.

6. If the property report issued by
another jurisdiction and submitted as part of the application for exemption
pursuant to this section is revoked, withdrawn or suspended, or a cease and
desist order is issued by the jurisdiction concerning activities relating to
the land, the exemption granted pursuant to this section is automatically
revoked.

7. If a person files a complaint against
an owner, broker or seller of land exempted from this chapter pursuant to this
section, the Division shall:

(a) Provide the person with the contact
information of the owner, broker or seller of the land that the Division has on
file; and

(b) If the owner, broker or seller is a licensed
or registered broker in another jurisdiction, provide the information contained
in the complaint to the appropriate regulatory agency of the other
jurisdiction.

NRS 119.120Exemptions: Single purchase; large lots; contractors; court
orders; governmental agencies.The
provisions of this chapter do not apply, unless the method of disposition is
adopted to evade those provisions or the provisions of the Interstate Land
Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, upon
notification to the Division by the person electing to be exempt under this
section, to the making of any offer or disposition of any subdivision or lot,
parcel, unit or interest therein:

1. By a purchaser of any lot, parcel,
interest or unit of a subdivision for his or her own account in a single or
isolated transaction.

2. If:

(a) Each lot, parcel, interest or unit being
offered or disposed of in any subdivision is more than 80 acres in size;

(b) The purchaser or his or her agent inspects
the land before purchasing it; and

(c) The developer signs an affirmation which
states that the purchaser or his or her agent has inspected the land before
purchasing it, and the affirmation is made a matter of record in accordance
with regulations of the Division.

Ê For purposes
of this subsection, the size of any undivided interest being offered or
disposed of in any subdivision must be computed by dividing the number of the
undivided interests into the area of the subdivision, exclusive of common or
reserved areas, roadways or easements.

3. To any person who is licensed in this
state to engage and is engaged in the business of the construction of
residential, commercial or industrial buildings located in this state for
disposition.

4. By any person who owns the land and is
licensed in the State of Nevada to construct residential buildings if the land
is located in this state and is to include a residential building when
disposition is completed.

NRS 119.121Exemptions: Single purchase; small lots; requirements for
partial registration.Unless the
method of disposition is adopted to evade the provisions of this chapter or of
the provisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§
1701 to 1720, inclusive, if each lot, parcel, interest or unit being offered or
disposed of in any subdivision is at least one-sixteenth of a section as
described by a survey of the government land office, but not less than 35
acres, or 40 acres in area, including roadways and easements, but not more than
80 acres in size, and the developer:

1. Completes an application in such form
and containing such reasonable information as the Division may require;

2. Pays the fees prescribed in this
chapter for a permit for partial registration;

3. Requires the purchaser or his or her
agent to inspect the land before purchasing it; and

4. Signs an affirmation which states that
the purchaser or his or her agent has inspected the land before purchasing it
and makes that affirmation a matter of record pursuant to the regulations of
the Division,

1. The provisions of this chapter do not
apply, unless the method of disposition is adopted to evade those provisions or
the provisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§
1701 to 1720, inclusive, upon notification to the Division by the person
electing to be exempt under this subsection, to:

(a) Any offer or disposition of any evidence of
indebtedness secured by way of any mortgage or deed of trust of real estate.

(b) Securities or units of interest issued by an
investment trust regulated under the laws of this state, except where the
Division finds that the enforcement of this chapter with respect to such
securities or units of interest is necessary in the public interest and for the
protection of purchasers.

(c) Cemetery lots.

2. Unless the method of disposition is
adopted to evade the provisions of this chapter or the provisions of the
Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720,
inclusive, this chapter does not apply to the sale or lease of real estate
located in this state which is free and clear of all liens, encumbrances and
adverse claims if each purchaser or his or her agent has personally inspected
the lot before purchase and if the developer executes a written affirmation to
that effect to be made a matter of record in accordance with regulations of the
Division. As used in this subsection, the terms “liens,” “encumbrances” and
“adverse claims” are not intended to refer to purchase money encumbrances nor
property reservations which land developers commonly convey or dedicate to
local bodies or public utilities for the purpose of bringing public services to
the land being developed nor to taxes and assessments which, under applicable
state or local law, constitute liens on the property before they are due.

3. The Division may, pursuant to
regulations adopted by it, exempt from any of the provisions of this chapter
any subdivision, if it finds that the enforcement of this chapter with respect
to subdivisions or lots, parcels, units or interests in subdivisions is not
necessary in the public interest and for the protection of purchasers. An
exemption granted pursuant to this subsection is effective for a period not to
exceed 1 year as determined by the division. The Division may revoke such an
exemption at any time upon finding that the revocation is necessary for the
protection of purchasers. Upon application for renewal of an exemption, the
Division may renew an exemption for a period not to exceed 1 year as determined
by the Division. An application for an exemption pursuant to this subsection,
or for the renewal of such an exemption, must be accompanied by the applicable
fee specified in NRS 119.320.

1. Any time-share project, person or
subdivision which is subject to the requirements of this chapter for licensing
and which complies with the provisions of chapter
119A of NRS is not required to comply with the provisions of this chapter.

2. Any campground or developer which is
subject to the requirements of chapter 119B
of NRS and complies with those provisions is not required to comply with the
provisions of this chapter.

NRS 119.130License: Requirement; appointment of Secretary of State as agent
for service of process; procedure for service of process.

1. No subdivision or lot, parcel, unit or
interest in any subdivision may in any way be offered or sold in this state by
any person until:

(a) The person has appointed in writing the
Secretary of State to be his or her agent, upon whom all process, in any action
or proceeding against the person, may be served, and in this writing the person
agrees that any process against him or her which is served on the Secretary of
State is of the same legal validity as if served on the person and that the
appointment continues in force as long as any liability remains outstanding
against the person in this state. The written appointment must be acknowledged
before a notary public and must be filed in the Office of the Secretary of
State with a fee of $10 for accepting and transmitting any legal process served
on the Secretary of State. Copies certified by the Secretary of State are
sufficient evidence of the appointment and agreement.

2. Service of process authorized by
paragraph (a) of subsection 1 must be made by filing with the Secretary of
State:

(a) Two copies of the legal process. The copies
must include a specific citation to the provisions of this section. The
Secretary of State may refuse to accept such service if the proper citation is
not included in each copy.

(b) A fee of $10.

Ê The
Secretary of State shall forthwith forward one copy of the legal process to the
licensee, by registered or certified mail prepaid to the licensee.

NRS 119.140License: Required information; application; fee.Any person or broker proposing to offer or
sell any subdivision or lot, parcel, unit or interest therein in this state
shall first submit to the Division:

1. The name and address of each person owning
or controlling an interest of 10 percent or more.

2. The name, principal occupation and
address of every officer, director, partner, owner, associate or trustee of the
subdivider.

3. The legal description and area of
lands.

4. A true statement of the condition of
the title to the land, including all encumbrances thereon.

5. A true statement of the terms and
conditions on which it is intended to dispose of the land and copies of the
instruments which will be delivered to a purchaser to evidence his or her
interest in the subdivision and of the contracts and other agreements which a
purchaser will be required to agree to or sign.

6. A true statement of the provisions, if
any, that have been made for public utilities in the proposed subdivision,
including water, electricity, gas, telephone and sewerage facilities.

7. A true statement of the use for which
the proposed subdivision will be offered.

8. A true statement of the provisions, if
any, limiting the use or occupancy of the parcels in the subdivision.

9. A true statement of the maximum depth
of fill used, or proposed to be used on each lot, and a true statement on the
soil conditions in the subdivision supported by engineering reports showing the
soil has been, or will be, prepared in accordance with the recommendations of a
licensed civil engineer.

10. A true statement of the amount of
indebtedness which is a lien upon the subdivision or any part thereof, and
which was incurred to pay for the construction of any on-site or off-site improvement,
or any community or recreational facility, and the names and addresses of the
holders of the indebtedness together with an indication of their relationship,
if any, to the owner and subdivider.

11. A true statement or reasonable
estimate, if applicable, of the amount of any indebtedness which has been or is
proposed to be incurred by an existing or proposed special district, entity,
taxing area or assessment district, within the boundaries of which the
subdivision, or any part thereof, is located, and which is to pay for the
construction or installation of any improvement or to furnish community or
recreational facilities to the subdivision, and which amounts are to be
obtained by ad valorem tax or assessment, or by a special assessment or tax upon
the subdivision, or any part thereof.

12. A true statement describing any
agricultural activities or conditions in the area which may adversely affect
residents of the subdivision, including any odors, cultivation and related
dust, agricultural burning, application of pesticides, or irrigation and
drainage.

13. Such other information as the owner,
his or her agent or subdivider may wish to present.

14. A completed application for a license
in such form and containing such additional information as the Division may
require on its filing forms.

1. The Division shall, before issuing any
license pursuant to the provisions of this chapter to any person, fully
investigate all information placed before it as is required pursuant to this
chapter and, if in the judgment of the Division it is necessary, inspect the
property which is the subject of the application. All reasonable expenses
incurred by the Division in carrying out the investigation or inspection must
be paid by the applicant and no license may be issued until those expenses have
been fully paid.

2. Payments received by the Division
pursuant to this section must be deposited in the State Treasury for Credit to
the Real Estate Investigative Account, which is hereby created in the State
General Fund. The Administrator shall use this Account to pay the expenses of
agents and employees of the Division in making an investigation pursuant to
this section. The Administrator may advance money for those expenses when
appropriate.

3. Each expenditure from the Investigative
Account must be paid as other claims against the State are paid.

1. The Administrator shall make an
examination of any subdivision, and shall, unless there are grounds for denial,
issue to the subdivider a property report authorizing the sale or lease, or the
offer for sale or lease, in this state of the lots or parcels in the
subdivision. The report must contain the data obtained in accordance with NRS 119.140 and which the Administrator determines are
necessary to carry out the purposes of this chapter. The Administrator may
publish the report.

2. The grounds for denial are:

(a) Failure to comply with any of the provisions
in this chapter or the rules and regulations of the Division pertaining
thereto.

(b) That the sale or lease would constitute
misrepresentation to or deceit or fraud of the purchasers or lessees.

(c) Inability to deliver title or other interest
contracted for.

(d) Inability to demonstrate that adequate
financial arrangements have been made for all off-site improvements included in
the offering.

(e) Inability to demonstrate that adequate
financial arrangements have been made for any community, recreational or other
facilities included in the offering.

(f) Failure to make a showing that the parcels
can be used for the purpose for which they are offered.

(g) Failure to provide in the contract or other
writing the use or uses for which the parcels are offered, together with any
covenants or conditions relative thereto.

(h) Agreements or bylaws to provide for
management or other services pertaining to common facilities in the offering,
which fail to comply with the regulations of the Division.

(i) Failure to demonstrate that adequate
financial arrangements have been made for any guaranty or warranty included in
the offering.

3. If the Administrator finds that grounds
for denial exist, the Administrator shall issue an order so stating to the
owner or subdivider no later than 30 days after receipt of the information
required to be filed by NRS 119.130 and 119.140. The Administrator may, alternatively, issue a
temporary permit to be effective for not more than 6 months from the date of
issuance. If the Administrator issues an order of denial, the owner or
developer may appeal the order to the Director who shall, within 5 days of the
receipt of the appeal, determine whether grounds for denial exist. If the
Director finds that grounds for denial exist, the Director shall confirm the
denial. If the Director confirms the denial, the owner or developer may appeal
to the Real Estate Commission, which shall conduct a hearing and either confirm
the denial or order a license issued within 30 days of the receipt of the
appeal.

4. If it appears to the Administrator that
a statement of record, or any amendment thereto, is on its face incomplete or
inaccurate in any material respect, the Administrator shall so advise the
developer within a reasonable time after the filing of the statement or the
amendment, but before the date the statement or amendment would otherwise be
effective. This notification serves to suspend the effective date of the
statement or the amendment until 30 days after the developer files such
additional information as the Administrator requires. Any developer, upon
receipt of such notice, may request a hearing, and the hearing must be held
within 20 days after receipt of the request by the Administrator.

NRS 119.163License: Creation and maintenance of website through which
licenses may be renewed; fees.The
Division may:

1. Create and maintain a secure website on
the Internet through which each registered representative’s license issued
pursuant to the provisions of this chapter may be renewed; and

2. For each registered representative’s
license renewed through the use of a website created and maintained pursuant to
subsection 1, charge a fee in addition to any other fee provided for pursuant
to this chapter which must not exceed the actual cost to the Division for
providing that service.

NRS 119.165Renewal of permit; creation and maintenance of website; fees.

1. A developer’s permit must be renewed
annually by the developer by filing an application with and paying the fee for
renewal to the Administrator. The application must be filed and the fee paid
not later than 30 days before the date on which the permit expires. The
application must include any change that has occurred in the information
previously provided to the Administrator or in a property report provided to a
prospective purchaser pursuant to the provisions of NRS
119.182.

2. The renewal is effective on the 30th
day after the filing of the application unless the Administrator:

(a) Denies the renewal pursuant to NRS 119.325 or for any other reason; or

(b) Approves the renewal on an earlier date.

3. The Division may:

(a) Create and maintain a secure website on the
Internet through which each developer’s permit issued pursuant to the
provisions of this chapter may be renewed; and

(b) For each developer’s permit renewed through
the use of a website created and maintained pursuant to paragraph (a), charge a
fee in addition to any other fee provided for pursuant to this chapter which
must not exceed the actual cost to the Division for providing that service.

NRS 119.167Requirement to notify Division in writing of certain
convictions.

1. A developer or registered
representative shall notify the Division in writing if he or she is convicted
of, or enters a plea of guilty, guilty but mentally ill or nolo contendere to,
a felony or any offense involving moral turpitude.

NRS 119.170Sales: Reference to Division or employees prohibited.No person, broker, salesperson or registered
representative shall in any manner refer to the Division or to any member or
employee thereof in offering or selling in this state any subdivision lot,
parcel or unit in a subdivision nor make any representation whatsoever that
such property has been inspected or approved or otherwise passed upon by the
Division or any official, department or employee of this state.

(Added to NRS by 1971, 1407)

NRS 119.175Responsibility of developer for acts of others.The developer is responsible for the acts of
each broker, salesperson, registered representative and any other person the
developer employs or engages to represent him or her which are performed within
the scope of such employment or engagement.

(Added to NRS by 1973, 1759)

NRS 119.180Sales: Approval of plan and methods required; application by
broker and salesperson.No
subdivision or lot, parcel or unit in any subdivision may be sold:

1. Until the Division has approved a
written plan or the methods proposed to be employed for the procurement of
prospective purchasers, the sale to purchasers and the retention of purchasers
after sale. The plan or methods must describe with particularity:

(a) The form and content of advertising to be
used;

(b) The nature of the offer of gifts or other
free benefits to be extended;

(c) The nature of promotional meetings involving
any person or act described in this subsection;

(d) The contracts, agreements and other papers to
be employed in the sale of the property; and

(e) Such other reasonable details as the Division
requires.

Ê The written
plan, or the methods proposed, may be filed as a part of the application under NRS 119.140.

2. Except through a broker, and before any
offering or disposition, pursuant to any license granted under this chapter,
the name of the broker must be placed on file with the Division. Only that
broker or his or her real estate salesperson may offer or sell the subdivided
property or any interest therein. Before a salesperson offers or sells any
property or interest, the salesperson’s name must be placed on file with the
Division. The broker and salesperson, if any, shall:

(a) Complete an application in such a form and
containing such reasonable information as the Division requires.

(b) Pay the fees prescribed in this chapter.

Ê A broker and
a salesperson may represent one or more developers only after completing an
application with respect to each developer in such a form and containing such
reasonable information as the Division requires and paying the fees prescribed
in this chapter.

1. No person, except a registered
representative of the developer or a broker or salesperson who has complied
with NRS 119.180 may induce, solicit or attempt to
have any person attend any offer or sale of subdivision property or any
interest therein. A broker is responsible for the inducing and soliciting activities
of his or her registered representative. The registered representative and the
developer must comply with the same standards of business ethics as apply to
licensed real estate brokers and salespersons. A registered representative
shall not make statements of any kind concerning prices, interests or values of
the subdivision property. A registered representative’s activities must be
limited to inducing and soliciting persons to attend an offer or sale of
subdivision property and handing out information approved by the Division and a
registered representative shall strictly conform to the written plan approved
by the Division pursuant to NRS 119.180.

2. Before engaging in any activities
specified in subsection 1, each registered representative of the developer,
under such regulations as the Division may promulgate, shall:

(a) Complete an application in such form and
containing such reasonable information as the Division may require.

(b) Pay the fees prescribed in this chapter.

Ê Such a
person shall be known as a registered representative of the developer and may
not use the term “licensee.” Real estate brokers and salespersons licensed in
the State of Nevada may function as registered representatives upon the
completion of whatever application and the submission of whatever reasonable
information the Division may prescribe, and upon the payment of the fees
prescribed in this chapter.

(Added to NRS by 1983, 276)

NRS 119.182Sales: Review of information by broker or salesperson;
rescission by purchaser.

1. The information submitted pursuant to NRS 119.140 must be given to and reviewed with each
purchaser by the broker or salesperson before the execution of any contract for
the sale of any such property. The broker shall obtain from the purchaser a
signed receipt for a copy of the information and, if a contract for disposition
is entered into, the receipt and a copy of all contracts and agreements must be
kept in the broker’s files within the State of Nevada for 3 years or 1 year
after final payment has been made on any contract for the sale of property,
whichever is longer, and is subject to such inspection and audit as may be
prescribed by regulations of the Division.

2. The purchaser of any subdivision or any
lot, parcel, unit or interest in any subdivision, not exempted under the
provisions of NRS 119.120 or 119.122
may cancel, by written notice, the contract of sale until midnight of the fifth
calendar day following the date of execution of the contract, and the contract
must so provide. The right of cancellation may not be waived. Any attempt by
the developer to obtain such a waiver results in a contract which is voidable
by the purchaser.

3. The notice of cancellation may be
delivered personally to the developer or sent by certified mail, return receipt
requested, to the business address of the developer.

4. The developer shall, within 15 days
after receipt of the notice of cancellation, return all payments made by the
purchaser.

NRS 119.183Sales: Disclosure to purchaser concerning public services and
utilities.Each seller of more
than one lot created by a map of division into large parcels must, before the
intending purchaser signs any binding agreement, disclose to the intending
purchaser in writing by a separate document signed by the intending purchaser
that the city, county, school district and special districts are not obligated
to furnish any service, specifically mentioning fire protection and roads, to
the land so divided, and that any public utility may be similarly free of
obligation.

(Added to NRS by 1979, 1507)

NRS 119.1835Sales: Disclosure to purchaser of location of rights-of-way and
easements for electrical transmission lines.It
is unlawful for a developer to sell any lot, parcel, unit or interest in a
subdivision without disclosing to the purchaser in writing, before the
purchaser signs any binding agreement, the location in the subdivision, and on
all land contiguous thereto, of all rights-of-way and easements for
transmission lines of public utilities that supply electricity if the developer
knows or reasonably should know the locations of such rights-of-way and
easements.

NRS 119.1837Sales: Developer must comply with certain provisions governing
public offering statements for common-interest community containing converted
building.It is unlawful for a
developer to sell any lot, parcel, unit or interest in a subdivision without
complying with the provisions of NRS
116.4106, if applicable.

1. A subdivision consisting of land
situated in the State of Nevada or another state must not be advertised or
offered for sale within the State of Nevada until the advertising and offering
is approved by the Division. Each advertisement must contain the processing
number assigned by the Division.

2. Each application for approval of
advertising must be accompanied by:

(a) A filing fee based on a schedule of fees
established by the Division; and

(b) Fees for inspecting the advertising and the
property in amounts established by the Division.

3. The Division shall render a decision
upon an application for approval of an advertising or offering within 30 days
from the date the application is filed.

4. The Division shall adopt regulations to
accomplish the purpose of this section.

(a) Bear a good reputation for honesty,
truthfulness and fair dealing;

(b) Are of good moral character;

(c) Are competent to transact the business of a
registered representative in such a manner as to safeguard the interests of the
public; and

(d) Meet such other reasonable requirements as
the Division may promulgate.

2. The Division shall establish rules and
regulations to carry out the provisions of this section.

(Added to NRS by 1973, 1759)

NRS 119.190Additional penalty for violations.In
addition to any other penalty imposed by this chapter, the Division:

1. Shall suspend or revoke the license or
registration of a broker, real estate salesperson or registered representative
who violates any provision of this chapter for such time as in the
circumstances it considers justified.

2. May deny the renewal of the license or
registration of a broker, real estate salesperson or registered representative
who violates any provision of this chapter.

NRS 119.200Participation by officers and employees of Division prohibited.No officer or employee of the Division or any
association, firm or corporation with which an officer or employee is
associated shall act as a broker of a subdivision, lot, parcel, unit or
interest therein or offer or dispose of a subdivision, lot, parcel, unit or
interest therein required to be approved pursuant to NRS
119.140.

(Added to NRS by 1971, 1408)

NRS 119.210News media not liable for publication or content of
advertisements.The owner,
publisher, licensee or operator of any newspaper, magazine, television or radio
broadcasting station or network of stations or the agents or employees of any
such owner, publisher, licensee or operator of such a newspaper, magazine,
station or network of stations shall not be liable under this chapter for any
advertising of any subdivision, lot, parcel or unit in any subdivision carried
in any such newspaper or magazine or by any such television or radio
broadcasting station or network of stations nor shall any of them be liable
under this chapter for the contents of any such advertisement.

(Added to NRS by 1971, 1409)

NRS 119.220Action by purchaser or Administrator for misrepresentation or
other violation.

1. Where any part of the statement of
record, when that part became effective, contained an untrue statement of a
material fact or omitted to state a material fact required to be stated
therein, the Administrator or any person acquiring a lot in the subdivision
covered by the statement of record from the developer or his or her agent
during the period the statement remained uncorrected (unless it is proved that
at the time of the acquisition the Administrator or purchaser knew of the
untruth or omission) may sue the developer in any court of competent
jurisdiction.

2. Any developer or agent, who sells or
leases a lot in a subdivision:

(a) In violation of this chapter; or

(b) By means of a property report which contained
an untrue statement of a material fact or omitted to state a material fact
required to be stated therein,

Ê may be sued
by the Administrator or purchaser of the lot.

3. If a suit authorized under subsection 1
or 2 is brought by the purchaser, the purchaser is entitled to recover such
damages as represent the difference between the amount paid for the lot and the
reasonable cost of any improvements thereto, and the lesser of:

(a) The value thereof as of the time the suit was
brought;

(b) The price at which the lot has been disposed
of in a bona fide market transaction before suit; or

(c) The price at which the lot has been disposed
of after suit in a bona fide market transaction but before judgment,

Ê or to
rescission of the contract of sale and the refund of any consideration paid by
the purchaser.

4. If a suit authorized under subsection 1
or 2 is brought by the Administrator, the Administrator may seek a declaration
of the court that any person entitled to sue the developer or his or her agent
under this section is entitled to the right of rescission and the refund of any
consideration paid by him or her.

5. Every person who becomes liable to make
any payment under this section may recover contribution as in cases of contract
from any person who, if sued separately, would have been liable to make the
same payment.

6. Reasonable attorney’s fees may be
awarded to the prevailing party in any action brought under this section. Any
action to rescind a contract of sale under this section must be brought within
1 year after the date of purchase or within 1 year after the date of the
discovery of the misrepresentation giving rise to the action for rescission.

7. The provisions of this section are in
addition to and not a substitute for any other right of a person to bring an
action in any court for any act involved in the offering or sale of an interest
in a subdivision or the right of the State to punish any person for any
violation of any law.

NRS 119.230Sale under blanket encumbrance unlawful; exceptions.It is unlawful for the owner or subdivider to
sell lots or parcels within a subdivision subject to a blanket encumbrance
unless one of the following conditions is complied with:

1. All sums paid or advanced by purchasers
are placed in an escrow or other depository acceptable to the Division until
the fee title contracted for is delivered to such purchaser by deed together
with complete release from all financial encumbrances; or

2. The fee title to the subdivision is
placed in trust under an agreement or trust acceptable to the Division until a
proper release from each blanket encumbrance, including all taxes, is obtained
and title contracted for is delivered to such purchaser; or

3. Such blanket encumbrance contains
provisions evidencing the subordination or release of the lien of the holder or
holders of the blanket encumbrance to the rights of those persons purchasing
from the subdivider, and further evidencing that the subdivider is able to
secure releases from such blanket encumbrances with respect to the property
upon full payment of the purchase price owed by such person.

(Added to NRS by 1971, 1409)

ENFORCEMENT OF CHAPTER; FEES

NRS 119.240Adoption of regulations required.The
Division shall, not later than January 1, 1972, and may from time to time
thereafter, promulgate such regulations as it deems necessary for the carrying
out and enforcement of the provisions of this chapter.

(Added to NRS by 1971, 1410)

NRS 119.250Actions to enjoin violations; intervention.

1. Whenever the Division believes from
evidence satisfactory to it that any person has violated any order, regulation,
license, permit, decision, demand or requirement, or any part or provision
thereof, or any of the provisions of this chapter, it may bring an action in
the name of the Division in the district court of the State of Nevada in the
county wherein such person resides or maintains his or her principal place of
business, or, if such person resides outside the State of Nevada, in any court
with proper jurisdiction within or outside the State of Nevada, against such
person to enjoin such person from continuing such violation, engaging therein
or doing any act or acts in furtherance thereof.

2. The Administrator in the name of the
Division may intervene in any action involving a subdivision or interest
therein, within the provisions of this chapter, if such intervention is
necessary in the public interest and for the protection of purchasers.

(Added to NRS by 1973, 1760)

NRS 119.260Orders to cease and desist; agreement with developer in lieu of
issuance of order.

1. The Administrator may issue orders
directing persons to desist and refrain from engaging in activities for which
they are not licensed under this chapter or conducting activities in a manner
not in compliance with the provisions of this chapter.

2. A person who has violated any of the
provisions of this chapter shall not engage in any activity for which a license
issued pursuant to this chapter is required after receiving an order in writing
from the Administrator directing the person to desist and refrain from so
doing.

3. Within 30 days after the receipt of
such an order, the person may file a verified petition with the Administrator
for a hearing.

4. The Administrator shall hold a hearing
within 30 days after the petition has been filed. If the Administrator fails to
hold a hearing within 30 days, or does not render a written decision within 45
days after the final hearing, the cease and desist order is rescinded.

5. If the decision of the Administrator
after a hearing is against the person ordered to cease and desist, the person
may appeal that decision by filing, within 30 days after the date on which the
decision was issued, a petition in the district court for the county in which
the person conducted the activity. The burden of proof in the appeal is on the
appellant. The court shall consider the decision of the Administrator for which
the appeal is taken and is limited solely to a consideration and determination
of the question of whether there has been an abuse of discretion on the part of
the Administrator in making the decision.

6. In lieu of issuing an order to cease
and desist, if the developer is conducting activities in a manner not in compliance
with the provisions of this chapter, the Administrator may enter into an
agreement with the developer in which the developer agrees to:

(a) Discontinue the activities that are not in
compliance with this chapter;

(b) Pay all costs incurred by the Division in
investigating the developer’s activities and conducting any necessary hearing;
and

(c) Return to the purchasers any money or
property which the developer acquired through such activities.

Ê Except as
otherwise provided in NRS 239.0115,
the terms of such an agreement are confidential unless violated by the
developer.

1. Except as otherwise provided in this
section and NRS 239.0115, a complaint
filed with the Division alleging a violation of this chapter, all documents and
other information filed with the complaint and all documents and other
information compiled as a result of an investigation conducted to determine
whether to initiate disciplinary action are confidential and may be disclosed
in whole or in part only as necessary in the course of administering this
chapter or to a licensing board or agency or any other governmental agency,
including, without limitation, a law enforcement agency, that is investigating
a person who holds a license or permit issued pursuant to this chapter.

2. The complaint or other charging
documents filed with the Division to initiate disciplinary action and all
documents and other information considered by the Division or a hearing officer
when determining whether to impose discipline are public records.

NRS 119.267Confidentiality of records: Certain criminal and financial
records deemed confidential; exceptions.Except
as otherwise provided in NRS 119.265, unless
otherwise ordered by a court, the Division may keep confidential the criminal
and financial records of a licensee, permittee or an applicant for a license or
permit issued pursuant to this chapter.

NRS 119.270Hearing officers.In
any proceeding under this chapter, the Administrator may appoint hearing
officers from the staff of the Department of Business and Industry who shall
act as his or her agents and conduct any hearing or investigation which may be
conducted by the Administrator under the provisions of this chapter.

(a) Take testimony and other evidence concerning
all matters within the jurisdiction of the Division under this chapter.

(b) Administer oaths.

(c) Certify to all official acts.

(d) For cause, issue subpoenas for attendance of
witnesses and the production of books and papers.

2. The Administrator shall classify as
confidential certain records and information obtained by the Division when such
matters are trade secrets, including but not limited to lists of prospective
purchasers and lists of purchasers with whom a sale has been consummated. This
power is subject to the limitations and protective measures in NRS 49.325.

(Added to NRS by 1973, 1761)

NRS 119.290Service of process; witness fees.

1. In any hearing in any part of the State
the process issued by the Administrator extends to all parts of the State and
may be served by any person authorized to serve process of courts of record.

2. The person serving any such process
shall receive such compensation as may be allowed by the Administrator, not to
exceed the fees prescribed by law for similar service.

3. Each witness who appears by order of
the Administrator shall receive for his or her attendance the same fees and
mileage allowed by law to a witness in civil cases, which amount shall be paid
by the party at whose request the witness is subpoenaed.

(Added to NRS by 1973, 1761)

NRS 119.300Action to compel attendance of witnesses and production of
documents.

1. The district court in the county in
which any hearing may be held has the power to compel the attendance of
witnesses, the giving of testimony and the production of books and papers as
requested by any subpoena issued by the Administrator.

2. In case of the refusal of any witness
to attend, testify or produce any papers required by such subpoena, the
Administrator may report to the district court in the county in which the
hearing is pending by petition, setting forth:

(a) That due notice has been given of the time
and place of attendance of the witness or the production of the books and
papers;

(b) That the witness has been subpoenaed in the
manner prescribed in this chapter; and

(c) That the witness has failed and refused to
attend or produce the papers required by subpoena before the Administrator in
the cause or proceeding named in the subpoena or has refused to answer
questions propounded to the witness in the course of such hearing, and asking
an order of the court compelling the witness to attend and testify or produce
the books or papers before the Administrator.

3. The court, upon petition of the
Administrator, may enter an order directing the witness to appear before the
court at a time and place to be fixed by the court in such order, the time to
be not more than 10 days from the date of the order, and then and there show
cause why the witness has not attended, testified or produced the books or
papers before the Administrator. A certified copy of the order shall be served
upon the witness. If it appears to the court that the subpoena was regularly
issued by the Administrator, the court may thereupon enter an order that the
witness appear before the Administrator at the time and place fixed in the
order and testify or produce the required books or papers, and upon failure to
obey the order the witness shall be dealt with as for contempt of court.

(Added to NRS by 1973, 1761)

NRS 119.310Depositions and discovery.

1. The Administrator may, in any hearing
before the Administrator, cause the depositions of witnesses to be taken in the
manner prescribed by the Nevada Rules of Civil Procedure for like depositions
in civil actions in the district court of this state, and to that end may
compel the attendance of witnesses and the production of books and papers.

2. The clerk of the district court in the
county in which any hearing is held by the Administrator shall, upon the
application of the Administrator, issue commissions or letters rogatory to
other states for the taking of evidence therein for use in any proceedings
before the Administrator.

3. Any party to any hearing before the Administrator
shall have the right to the attendance of witnesses in his or her behalf at
such hearing or upon deposition, as set forth in this section, upon making
request therefor to the Administrator and designating the name and address of
the person or persons sought to be subpoenaed.

(Added to NRS by 1973, 1762)

NRS 119.320Fees.

1. Subject to the provisions of this
chapter, the Division shall collect the following fees at such times and upon
such conditions as it may provide by regulation:

For each annual
registered representative’s license to represent a developer $85

For each transfer of
a registered representative’s license to represent a developer 30

For each penalty for
a late renewal of a registered representative’s license.. 40

For each application
for a developer’s request for an exemption from any provision of this chapter 275

For each application
for renewal of an exemption from any provision of this chapter 275

For each developer’s
permit per subdivision..................................................... 500

For each developer’s
temporary permit for each subdivision........................ 275

For each renewal of a
developer’s permit.......................................................... 500

For each developer’s
partial registration pursuant to NRS 119.121............. 275

For each amendment to
a developer’s permit.................................................. 150

The $500 fee for a developer’s permit per subdivision does
not apply to any subdivision having 34 or fewer lots, parcels, interests or
units.

2. At the time of the original filing,
each developer shall pay an additional $5 for each lot, parcel, interest or
unit in any one subdivision in excess of 50, but not exceeding 250 such lots,
parcels, interests or units; $4 for 251 through 500 lots, parcels, interests or
units in any one subdivision; $3 for 501 through 750 lots, parcels, interests
or units in any one subdivision; and $2.50 for all lots, parcels, interests or
units in excess of 750 in any one subdivision. The developer may designate
lots, parcels, interests or units it intends to offer for sale or lease in this
state out of the subdivision, and the fee per lot, parcel, interest or unit is
only applicable to those lots, parcels, interests or units. The units must be
designated in groupings of no less than 5 contiguous units in each group,
except that the Division may accept fewer upon request of the developer. If the
developer determines to offer additional lots, parcels, interests or units, it
shall so certify to the Division and pay the additional fee therefor.

3. With the exception of the fees for a
registered representative’s license or transfer, the fees enumerated in this
section must be reduced by the Administrator at such times as, in his or her
judgment, the Administrator considers a reduction equitable in relation to the
necessary costs of carrying out the administration and enforcement of the
provisions of this chapter.

NRS 119.325Grounds for imposing fine or suspending, revoking, denying
renewal of or placing conditions upon property report, permit, partial
registration, exemption or license.The
Administrator may impose a fine or suspend, revoke, deny the renewal of or
place conditions upon the property report, permit, partial registration,
exemption or license issued pursuant to this chapter of a developer at any time
if:

1. The developer obtained the property
report, permit, partial registration, exemption or license by false or
fraudulent representation; or

2. The developer violates any of the terms
or conditions of the property report, permit, partial registration, exemption
or license, the provisions of this chapter or the regulations adopted pursuant
thereto.

Ê The
Administrator shall not impose a fine of more than $5,000 pursuant to this
section.

NRS 119.327Expiration, revocation or surrender of property report, permit,
partial registration, exemption, license or registration does not prohibit
disciplinary action against holder thereof.The
expiration or revocation of a property report, permit, partial registration,
exemption, license or registration by operation of law or by order or decision
of the Administrator, a hearing officer or a court of competent jurisdiction,
or the voluntary surrender of a property report, permit, partial registration,
exemption, license or registration by a developer, broker, real estate
salesperson or registered representative does not:

1. Prohibit the Administrator or Division
from initiating or continuing an investigation of, or action or disciplinary
proceeding against, the developer, broker, real estate salesperson or
registered representative as authorized pursuant to the provisions of this
chapter or the regulations adopted pursuant thereto; or

2. Prevent the imposition or collection of
any fine or penalty authorized pursuant to the provisions of this chapter or
the regulations adopted pursuant thereto against the developer, broker, real
estate salesperson or registered representative.

1. In addition to any other remedy or
penalty, the Administrator may impose an administrative fine against any person
who knowingly:

(a) Engages or offers to engage in any activity
for which a license, permit or registration or any type of authorization is
required pursuant to this chapter, or any regulation adopted pursuant thereto,
if the person does not hold the required license, permit or registration or has
not been given the required authorization; or

(b) Assists or offers to assist another person to
commit a violation described in paragraph (a).

2. If the Administrator imposes an administrative
fine against a person pursuant to this section, the amount of the
administrative fine may not exceed the amount of any gain or economic benefit
that the person derived from the violation or $5,000, whichever amount is
greater.

3. In determining the appropriate amount
of the administrative fine, the Administrator shall consider:

(a) The severity of the violation and the degree
of any harm that the violation caused to other persons;

(b) The nature and amount of any gain or economic
benefit that the person derived from the violation;

(c) The person’s history or record of other
violations; and

(d) Any other facts or circumstances that the
Administrator deems to be relevant.

4. Before the Administrator may impose the
administrative fine, the Administrator must provide the person with notice and
an opportunity to be heard.

5. The person is entitled to judicial
review of the decision of the Administrator in the manner provided by chapter 233B of NRS.

6. The provisions of this section do not
apply to a person who engages or offers to engage in activities within the
purview of this chapter if:

(a) A specific statute exempts the person from
complying with the provisions of this chapter with regard to those activities;
and

(b) The person is acting in accordance with the
exemption while engaging or offering to engage in those activities.

1. Except as otherwise provided in
subsection 2, a person violating a provision of this chapter, if a natural
person, is guilty of a gross misdemeanor, and if a copartnership, association
or corporation, shall be punished by a fine of not more than $10,000 for each
offense.

2. A person who:

(a) Sells or attempts to sell in this state any
subdivision or any lot, parcel, unit or interest in any subdivision by means of
intentional misrepresentation, deceit or fraud; or

(b) Obtains or attempts to obtain a license under
this chapter by means of intentional misrepresentation, deceit or fraud,

Ê is guilty of
a category C felony and shall be punished as provided in NRS 193.130. In addition to any other
penalty, the court shall order the person to pay restitution.

3. An officer or agent of a corporation,
or member or agent of a copartnership or association, who personally
participates in or is an accessory to any violation of this chapter by the
copartnership, association or corporation, is subject to the penalties
prescribed for natural persons in this section.

4. This section does not release any
person, corporation, association or copartnership from civil liability or
criminal prosecution under any other law of this state.

5. Upon conviction the court may revoke
the license of the person so convicted, in addition to imposing the other
penalties provided in this section.